Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
: o$ {. u: p. y7 |- ]expect much from Crude Oil producers and future is not with the
9 q6 G/ N. Z" u# r* i* v7 zcompanies producing Jet fuels but Biofuels. Also no wonder if some of
# q# G* B0 M. p9 t, E% ?2 A! ^7 Othese oil producer will go bankrupt or out of the business even if
& i) d' T# W4 n9 A1 [! gcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
! C2 D, x5 J3 Z1 c" Umonths. There are three wars going on in Gaza, Iraq and Afghandistan.
0 l5 b, W8 ]! \: Q$ @' p6 sA year ago these things would have spiked the price of crude oil by at
& h' u6 ]+ d! l+ b8 fleast $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
6 @; B# }8 H0 `9 Rof so much news. These reasons are:
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* {+ h& B2 ~. c% k8 R0 R1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
% ^- [& f4 i3 p* Z9 v* _$ m& LArabia.
+ V' C3 U5 u6 a5 C1 C  Z

2. New natural gas has been found in Pennsylvania and West Virginia.
. E4 C# ^- i) D5 y4 }) BThis is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
8 v7 g' k4 P4 y& W: ^being used to double their output.

0 F* G: B. A% V9 x6 H  r
1 }" W+ a2 T2 h& F0 \4. Production of bio-fuels is beginning to reach critical mass. Bio
  c; f" w- ~$ G- t' Yfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
" Q: l4 ~/ Y+ S& g! e/ }+ rare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
% k3 U+ m+ O; O8 T" Mto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
5 e* O6 ~! a2 {8 F
+ `8 s- B1 U; H/ h# X: V1 X
6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
3 @; ^6 H% [, F1 _" p+ e7 L- @expected to be built in the future. Much of the energy they produce
6 X0 X( }- i; ?. p- ?# D# [* A$ Cwill replace oil.


2 ?& d2 h% q. m: h" v* J7. Every company in any form of transportaion business is replacing
( _8 O% ~& A! I" [6 ~older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
5 g& |7 X/ e8 p& D8 kequipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
( D9 i# u' D3 a' x; s0 Moil.

* t& z* r' L; D6 a
/ D! Q9 s! S8 [; k9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
0 w' c! n, {' N3 ^oil wells.
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$ G& H* D' ^" k! [( p  s+ i+ V
5 W6 y" C" S  d+ f4 q9 r10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
6 R+ E: M  s& mprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
. W( J% Y" A8 Q! H- P7 m9 p! {to control oil prices.

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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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% J% F+ A$ \' Q  m# B. E" o0 ?The above articles are from WSJ .............PUBLISHED ON 9TH JAN
& m& k( U1 q# r3 e9 `4 {2009 ... FYI-Only